The NFP figures, closely monitored by the US Federal Reserve, have a profound influence on monetary policy decisions. The heated job market’s performance is now a key factor as the Fed seeks to balance employment and inflation.
According to the recent NFP report, the US unemployment rate climbed to 3.8% in August. This unexpected rise had a significant impact, sending bond yields lower and altering market expectations.
It appears that the chances of a September interest rate hike by the Fed have dwindled to nearly zero, with a 35% probability of a hike in November. This news has bolstered the stock market.
Global shares have reacted positively to the data, extending their gains as wage growth moderated and unemployment increased. This suggests that the Federal Reserve might be done with its rate-raising cycle, providing relief to investors.
Interestingly, the cryptocurrency market, particularly Bitcoin, also felt the NFP shockwaves. Bitcoin’s price experienced a swift test of support at $26,000 as market participants reacted to the NFP data release.
Despite this initial turbulence, historical patterns suggest that the impact on Bitcoin will likely be short-lived, with increased volatility during the American trading session.
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